MAN5410: Project Integration and Procurement Management Report

This report analyzes project integration and procurement management within the Australian retail sector, focusing on the sustainability practices of Coles. The report begins by describing the retail trade market in Australia, considering both private and business customers, current purchasing behaviors, and potential future changes, supported by statistical data. It then outlines possible sustainable procurement practices for Coles, considering capital, maintenance, and operating activities, and comparing project versus operating activities. The report further examines the impact of new technologies on procurement, for both end customers and producers in the supply chain, including the use of digital marketing, analytics, and artificial intelligence. Finally, it discusses the role of the procurement management team, detailing procurement risks and a sample procurement approach, to ensure the successful completion of projects within the company. The assignment addresses the specific requirements of the MAN5410 module at Edith Cowan University, focusing on the Australian market and Coles' sustainability initiatives.

Running head: PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT
PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT
Name of the student:
Name of the university:
Author Note:

1PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT
Table of Contents
In Response to Question 1......................................................................................................2
In Response to Question 2..........................................................................................................5
In Response to Question 3......................................................................................................7
In Response to Question 4......................................................................................................8
References................................................................................................................................12

2PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT
In Response to Question 1
There are actually some of the significant players in the retail industry which are some
of the competitors of Coles and further the market share based on the current economic
situation of Australia. The statistics regarding the market share in the retail industry have
been depicted accordingly:
Retailer Market Share
Woolsworth 41%
Coles 31%
Other Supermarkets 14%
ALDI 7%
Specialty Foods 6%
Franklins 1%
Market Share
Woolsworth Coles Other Supermarkets
ALDI Speciality Foods Franklins
The industry of the retail sectors actual adopted 40% of the market share compared to
the other companies in the retail sector industry. The other industry actually is adopting the
other 60% of the share apart from the share of the super markets. In case of the supermarkets
Woolworth is holding the maximum shares in comparison to Coles which is holding of about
31% of the share.

3PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT
The Australian food industry is completely dependent on the natural resource and
further it is also quite important for the company to understand the Australian environment
and the capacity in the natural resource. In order to build effective sustainability
development, most of the Australian food industry actually concentrates on the environmental
management system and to manipulate the impact on the activities which actually have on the
environment in order to make it pollution free (Cordray et al., 2015).
The retailing sectors in Australia is facing tremendous growth in the overall GDP of
the company along with the enhancement in the distribution process of the firm. As per the
records which are actually obtained as per the e-commerce industry it is quite noted that the
overall women’s fashion of the industry is highest in comparison to the men’s fashion,
footwear and active wear. The top most organization which are actually playing the most
significant role in this case are the ALDI Group, Metcash Limited, Woolworths and many
more. The company are well known for the performance in the retail sector of the firm along
with the current overall factors in that case.

4PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT
The retail sectors of Australia is dominated by 1-5 major players in the retail market
which is further regarded as the consolidated market. The market concentration actually
remains within the middle of the segment where there actually lies the higher concentration
as the retail company deals with the same line of business. In such a situation, there actually
lies higher competitions in the business prospects of the company. In the lower level which is
actually regarded as the fragmented where the competition within the market remains highly
intense without any dominant players in the market. The above depicted picture is actually
obtained from the chart of Mordor intelligence. The dominant players in the upper level
adopts the main role in generating the revenue in the business (Darr, 2019).
The retail market in Australia showed an effective performance during the year 2018.
The overall growth in the retail sector in Australia actually valued based on the marginal
growth in the year 2017 and the period is further reviewed in that case based on CAGR.
Further the retail outlet in the country actually declined at a faster rate in the previous three

5PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT
years. Based on the recent statistics it can be said that Coles set to heavily invest in order to
strengthen the overall online business.
In Response to Question 2
The sustainability procurement practices for Coles is all about the commitment
towards the sustainable future in the community of Australia. Coles actually have more
responsibility in order to generate positive outcome regarding the decision taken by the
company in that case. Coles actually adopted the range of policies in order to make
commitments regarding maintaining the sustainable operation of the business. Based on the
policies and procedures in that case which is adopted by the company are further taken into
consideration by the upper level management of the company.
The Sustainability procurement of Coles actually deals with the responsibility of
managing the social and the environmental impacts which are further associated with the
business. In such a situation, Coles is concentrating on the three key factors which are the
ethical sourcing, responsible sourcing, environment and further commitments made towards
the other factors. The significant initiatives of the company is actually related to the
maintenance of the waste and recycling, protecting the human rights of the supply chain
along with the responsibility of the sourcing in that case (Laudon & Laudon, 2016).
The members if the company actually believes that they are taking the right decisions
and actions which would actually create the positive difference (De Araújo et al., 2017). The
company is actually concentrating on the wastage of food and packaging process. Taking care
of the small things will further help the company to enhance the overall profitability position
of the company in the future. This is only possible if the operation and the capital
maintenance activities of the company is effective in nature. It will automatically reduce the

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wastage in the process and further the company will go through the optimum utilization of
resources.
The business of Coles is taking a significant steps towards the approach of capital
maintenance and operating activities. Recently there is a possibility that there may be a
demerger among the two companies which are the Wesfarmers and Coles in the coming
years. Further the impact of the demerger has been depicted bellow:
Based on the statistics it can be said that the concept of demerger which is adopted by
Wesfarmers and Coles will be effective as it will strengthen the balance sheet of Wesfarmers.
This will further help Wesfarmers to enhance the supermarkets as the financial performance
or rather the revenue of Coles is comparatively higher in comparison to Wesfarmers (Kaplan
& Atkinson, 2015).
The list of some of the key commitments which will adopted by the company is going
to be implemented in that case:

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 The first commitment which is made by the operations of the company is that 90% of
the wastage of will be diverted in the from of landfill by the year 2022.
 The second commitment is regarding the halves of the food waste in Coles super
market by the year 2020.
 The third commitment is regarding donating the unsold edible food from every Coles
super market in Australia.
 The fourth commitment which is made by the company is that providing 100 million
meal which is needed by the Australian.
The above discussed commitments in that case must be adopted by the company for the
purpose of enhancing the project operations which is actually related to the development of
the overall sustainability of Coles (Bharti, Patra & Saxena, 2018).
In Response to Question 3
The implementation of the new technology in the company will further enhance the
production process of the firm. It will also reduce the time in the receiving the products from
the manufacturing to the warehouse and then the super market. The actual reason behind that
is the logistics system of the company will be effective by the implementation of the tools
and techniques which the company will implement within the management system of the
firm. The technologies which are actually used in this case are the digital marketing,
analytics, artificial intelligence and many more.
It is important for the business of the company to have an end to end control of the
goods and services which is actually produced by the company. The systematic changes in
that case must be adopted by the company in term of implementing upgrade on the
technology which is actually used by the company (Ansoff et al., 2018). The supply chain
management is actually falling under the operations of the company where the employees of

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the company must make the relevant business measures of the company in that case. The
business in that case will implement the new tools and technique in order to enhance the
supply chain management of the company. The certain aspects of the business are further
monitored and kept in track by the upper level management of the firm which are the
directors and the CEO of the company. The ultimate decisions regarding the implementation
of such tools and techniques further rest on the upper level management of the company.
The effect on the sales of the company must be noted by the high-level management
and the further the responsibility of the supply chain management team to keep track on the
profile of the customers of Coles along with that the feedback of the customers must be noted
on a regular basis (De Marco, 2018). This will create a definite impact on the financial
performance of the Coles along with the various aspects which are associated with the overall
growth of the company. Based on the objective and goals of the company it is needed by the
company to adopt the effective business management strategy which will help the company
to retain the potential customers in order to secure the future business position of the
company.
It is actually important for the company to update the technology and needs to take
care of the efficiency in each and every department within the organization. The enhancement
in the technological factor will automatically create positive impact on the internal operation
conducted in the food industry. The usage of the information technology in this case plays
significant role in case of the supply chain management which further involves keeping the
track of the products which are actually delivered to the customers. Further effective IT
operation enables to keep the update of the customers profile and to track the choice and
preferences made by the customers.

9PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT
In Response to Question 4
The responsibility of the procurement management team of the company plays
significant role in enhancing the current project which will be adopted by the company. The
project manager in this case takes the responsibility regarding the successful completion of
the project. In case of developing the project schedule by the company it is important for the
business to have a clear understanding regarding the project of the company along with the
significant parameters which is needed to be adopted in that case (Fleming, 2019).
Procurement Management Approach
Here the items which are required to be procured are mentioned in this case along
with the specific conditions of it. The services of the items must be submitted to the contracts
or rather the purchasing department:
Items/Services Justifications Needed By
Item A 4*2/4
tool
Used to manufacture the widget type which
is not made by Coles
31 July 2019
Item B 2*1/3
tool
Used to build the tool type which is made
by Coles but have limited knowledge
regarding the cost comparison
15 Aug 2019
Item C Used to transfer the operating system which
is not made by Coles
1 Sep 2019

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The authorized individual for the procurement process are the David Beckham who is
the project manager, Joe Jonas is the lead engineer and Bob Marley is the design technician
in this case.
Cost Determination and Risk Management
It is actually needed to determine the cost based on the certain approach which are the
request for bid request for proposal and request for quotes. On the other hand it is also
required by the company to manage the risk which is associated with such kind of
procurement.
Procurement Risks
The procurement constraints are basically related to the cost, scope, resource and
technology which the upper level management of the company actually struggles to manage
the activities related to it.
Products Constraints
The product related constraints which is included in this case are the market
efficiency, perishability, seasonality, storage requirements and the commodity cost which is
actually shared based on the final products. There are constraints regarding the maintenance
of the product in that case.
Company and Service related constraints
The company related constraints in the food and beverage industry is actually based
on certain characteristics of the firm. Further it is needed to examine the size and the nature

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of the market, based on that the significant decisions are needed to be taken. The service
related departments on the other hand is constantly depended on the retailer departments
along with the service levels of the suppliers.
Contract Approval Process
The items must be analyzed along with the importance of it which actually takes place
within the organization of the company at the time of decision making. The contract of the
business is only approved if all the requirements are met by the company.
Decision Criteria and Vendor management
The decision criteria of the management team is particularly based on certain
parameters which are the quality, cost delivery date, past performance and any more. The
vendors are also selected by the company where they supplies the required items or materials
in that case.
Performance metrics of procurement activities
Vendor Product
Quality
On time
Delivery
Documentation
Quality
Development
Costs
Development
time
Cost
per
unit
Transactional
efficiency
Vendor
1
    24 hrs 0.25 Moderate

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Vendor
2
  No  18 hrs 0.35 High
References
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting
strategic management. Springer.
Bharti, H., Patra, A. K., & Saxena, R. K. (2018). U.S. Patent Application No. 15/619,120.
Cordray, C., Link, D., Chart, R., & Ginter, K. (2015). U.S. Patent No. 9,077,611.
Washington, DC: U.S. Patent and Trademark Office.
Darr, W. (2019). Advanced Issues of Procurement Management. tredition.
De Araújo, M. C. B., Alencar, L. H., & de Miranda Mota, C. M. (2017). Project procurement
management: A structured literature review. International Journal of Project
Management, 35(3), 353-377.
De Marco, A. (2018). Procurement Management. In Project Management for Facility
Constructions (pp. 149-154). Springer, Cham.
Fleming, Q. W. (2019, January). Project procurement management: contracting,
subcontracting, teaming. Project Management Institute.
Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning.

13PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Rhee, S., Stulen, F. B., Houser, K. L., & Faller, C. N. (2016). U.S. Patent No. 9,283,045.
Washington, DC: U.S. Patent and Trademark Office.
Steinberg, J. D. (2016). U.S. Patent No. 9,244,470. Washington, DC: U.S. Patent and
Trademark Office.
Whitaker, S. (2016). Procurement Management. In Pass the PMP® Exam (pp. 405-444).
Apress, Berkeley, CA.
Wilz Sr, D., Walczyk, J. A., & Meagher, M. (2016). U.S. Patent Application No. 14/695,364.